Cell C kisses billions goodbye

Cell C has cut its initial public offering (IPO) price, bringing the mobile operator’s post-IPO market cap down to R9 billion from up to R12 billion previously.

Cell C recently launched its initial public offering (IPO), which was set to close at midday on Friday, 21 November 2025.

Cell C-owner Blu Label Unlimited initially eyed an offer price of between R29.50 and R35.50 per share, which implied a market cap of between R10 billion and R12 billion.

However, on Friday, 21 November, at around midday, Cell C informed the market that it had to reduce this offer price to R26.50 per share, implying a market cap of R9 billion.

Cell C is currently majority owned by Blu Label, which holds a 59.66% stake in the mobile operator through The Prepaid Company (TPC).

By spinning off and listing Cell C separately, Blu Label is targeting gross proceeds of up to R6.5 billion from the sale of shares, including an overallotment of R338 million.

The mobile operator said the proceeds would be used to settle certain interest-bearing borrowings and other debt obligations.

Initially, the IPO comprised up to 173.4 million ordinary shares, alongside an additional 9.52 million shares available through an overallotment option. This represents up to 53.8% of Cell C’s issued share capital post-listing.

However, Cell C announced that this would also be adjusted, and the company no longer intends to overallot any shares in the offer.

In addition, Cell C said it will be extending the bookbuild until 16:00 on Friday, 21 November 2025. 

The company said this extension will provide investors with additional time to consider the final offer price as part of their investment decisions.

Many analysts have recently expressed their doubts about Cell C’s prospects, given the steep competition in South Africa’s telecommunications environment and its market position.